Coliving: a cure for urban loneliness?
In this article we will discuss the emerging trends of coliving and coworking together with Jack Renteria, National Chair of ULI Denmark and an international leader in new residential concepts. Jack has played a key role in developing innovative living solutions, including co-creating the concept for Kaktus Towers and leading Living By ALFA Development in recent years.
Discovering a passion for living concepts
Jack has spent many years in his career as a part of a renowned architectural office — 3XN. But eventually he decided on a transition from architecture to real estate, which was motivated by his desire to engage with the industry from a different angle. A key moment in this shift came through the Urban Land Institute (ULI). Thanks to the ULI conference in Los Angeles, Jack learned about coliving. He got more involved with ULI, which connected all key stakeholders in the real estate ecosystem—investors, developers, operators, and municipal decision-makers.
Coliving as an urban solution
The appeal of coliving became clear through Jack’s personal experience. Moving to Denmark as a young professional, he met the typical challenges of securing rental housing: large deposits, high upfront costs, or spaces that were too large.
Coliving presents an alternative: smaller private units complemented by larger shared spaces.
The mantra goes: sleep in the room, live in the building.
Inspired by successful models like The Collective in London, Jack saw the concept as a viable housing solution for young professionals and expats.
Building connections and new models
The journey into coliving was marked by collaboration with industry pioneers. Engaging with professionals like Adina David and Ashley Perry, who played important roles in developing coliving concepts, strengthened the value of knowledge-sharing. Through these connections, the idea of creating a coliving prototype emerged.
Generation Global, a project developed in partnership with a Norwegian developer, aimed to cater to young professionals. However, the COVID-19 pandemic disrupted its progress, pausing many developments. Despite this setback, the experience opened doors to new partnerships, including work with Catella on Copenhagen’s Kaktus Towers—a new step in redefining urban living spaces.
The financial implications of coliving
One of the biggest questions surrounding coliving is its affordability and how it impacts property valuation. These are two distinct but interconnected issues.
Affordability and the housing crisis
Copenhagen, like many major cities, is experiencing a severe housing crisis. The cost of living is rising, making it increasingly difficult for people to find affordable housing. Several factors contribute to this crisis:
High number of single-person households – 44% of all households in Copenhagen consist of just one person. This increases demand for smaller units, driving up rental prices.
High percentage of income spent on rent – 25% of Copenhagen residents spend more than 40% of their disposable income on housing costs.
A shortage of housing units – The city needs around 60,000 additional homes to meet demand, yet current municipal plans aim to deliver just 40,000.
Given this situation, coliving offers an alternative that could ease the burden on renters. These shared living spaces provide not only more affordable rent compared to traditional flats, but also additional services and amenities, making them a viable solution for many urban dwellers.
Coliving as a smart housing alternative
Coliving solutions, such as those found in buildings like Kaktus or Noli concept, appeal specifically to young professionals and expats. Many of these individuals previously had to rent single rooms in shared flats under uncertain conditions—paying high prices while negotiating daily living arrangements like access to the kitchen or bathroom.
With coliving, these individuals gain access to well-designed private spaces along with shared amenities, such as co-working areas, lounges, and communal kitchens. This approach significantly improves their quality of life while keeping costs relatively lower than renting a private flat.
The role of shared spaces in coliving
One key trade-off in coliving is the reduction of personal square meters in favour of shared facilities. Instead of having a private office or entertainment space within their flat, residents use communal co-working areas, shared kitchens, and social lounges. Kaktus Towers, for example, offers multiple co-working spaces for residents.
This shift in lifestyle aligns with the preferences of a specific demographic—mainly young professionals in transition. The average age of Kaktus residents is 30.5 years old. These are individuals moving between cities or early in their careers, prioritizing experiences over long-term property ownership. For them, coliving offers flexibility, affordability, and a strong sense of community.
The social aspect of coliving is another major draw. Residents see their home as more than just a place to sleep—it becomes a hub of experiences.
2. The Impact on property valuation
Beyond affordability, coliving also influences property valuation. Developers and investors are increasingly drawn to operational real estate—properties that not only provide housing but also offer services, events, and additional revenue streams.
Carl-Johan Collet, chair of the ULI Europe Operational Real Estate Product Council, describes this shift as the concept of a building having two lives:
The physical asset – The real estate itself, including the design, location, and infrastructure.
The daily life within the building – The activities, services, and community aspects that enhance its value.
When a coliving space offers unique experiences and amenities, it generates additional revenue streams through service charges and increased rental rates. This, in turn, makes the asset more attractive to investors. A building with a waiting list, high occupancy, and strong tenant satisfaction will naturally see an increase in valuation.
The latest ULI Emerging Trends in Real Estate report even highlights operational real estate as a key trend in urban development. This growing interest suggests that coliving is not just a temporary solution to the housing crisis but a sustainable, long-term investment opportunity.
The evolution of coliving: maximizing efficiency and value
Coliving is an evolving concept that is not just about shared spaces, but also about getting the model right. The balance between operational efficiency and financial sustainability is critical. As observed in the UK, while some coliving concepts have been successful, others have struggled due to inefficient operational models and excessive spending. Learning from past examples, it becomes essential to optimize operational platforms and make well-informed decisions about whether to integrate management within an organization or collaborate with external operators.
One key advantage of coliving is the opportunity to maximize value while reducing unnecessary costs. By carefully structuring operational frameworks, coliving spaces can be both financially viable and attractive to residents. The UK has been a frontrunner in testing new models, offering valuable case studies for developers looking to refine their approaches.
Kaktus Towers, Copenhagen | Rasmus Hjortshoej
Sustainability in coliving
A major sustainability benefit of coliving is the efficient use of space and resources. Shared facilities reduce individual consumption, contributing to lower energy use and cost savings. Rather than each flat having a separate washing machine, a communal laundry facility reduces the number of appliances needed, saving both money and energy.
This concept extends beyond just utilities. Innovative storage solutions such as shared cupboards stocked with household essentials like ironing boards and drills help reduce unnecessary purchases. Residents can rent these items when required, further promoting a resource-efficient lifestyle. By living in smaller personal spaces but sharing communal areas, residents naturally adopt a more sustainable way of life.
Social impact: building communities beyond sustainability
While sustainability is a crucial aspect of coliving, the social impact is equally important. Coliving spaces create connections among residents, which is particularly beneficial for individuals at different life stages. For young professionals, these communities help battle loneliness by creating opportunities for social interaction. Meanwhile, for seniors, coliving can be life-changing. A sense of community can significantly enhance their well-being, as seen in cases where elderly residents, once isolated, became more active and engaged after moving into a communal setting.
Coworking trends: the shifting landscape of workspaces
The shift toward flexible work since the pandemic has transformed the way people use office spaces. In Denmark, the office sector has remained stable, but in cities like London, hybrid work models have become more common, with many professionals working from home several days a week.
This transformation has led to the rise of flexible workspaces that appeal to remote workers who do not necessarily want to work from home but also do not need a traditional office.
In Denmark, examples of this include:
BloxHub: A flexible office concept that accommodates everyone from individuals to corporations like Novo Nordisk.
Woods: A workspace open to all, where users can work from a café setting or rent entire office floors, providing an adaptable office experience.
Zoku: A hybrid concept that combines co-working with hospitality.
The future of workspaces
Traditional office spaces are evolving to incorporate these new models. Companies must recognize the changing needs of employees and offer more flexible and adaptive work environments. This shift requires a rethinking of office design to integrate elements of coliving and co-working, creating dynamic spaces that accommodate different work styles and preferences.
The future of living and working lies in flexibility, sustainability, and community-driven spaces.
The challenge is to develop models that balance financial efficiency with meaningful social and environmental impact.
Coliving and coworking — what’s next?
Both coliving and coworking address some key challenges facing society today. One of them is the growing epidemic of loneliness. At the same time, the Covid-19 pandemic revealed that many of our living and working patterns need to evolve. This podcast episode explores several aspects of the topic and aims to provide insights into how we can design our cities to foster stronger communities.
Book recommendation of the episode
Art of Coliving
